Learn about the new Section , issued by the Accounting Standards Board in September to replace Section Employee Future Benefits, which will replace Section in Part II of the CICA Handbook. The final version is consistent with the Exposure. Does anyone have an example similar to the illustrative examples of that actually use immediate recognition? The examples continue to.

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These are legitimate questions for professors to ask and dica that the authors had to deal with in determining some of the content of the 5th edition!

Those that grant unrestricted time off for past service are classified as service-related future benefits, with the liability and expense accrued over the service period.

CICA Immediate recognition – Actuarial Outpost

This may differ depending on the circumstance. More discussion about the treatment of sabbaticals.

Major assumptions cca various measurements such as the discount rate, the expected long-term rate of return on plan assets, the rate of compensation increase, and information about the assumed health care cost trend rates for health care benefits. The final standard looks different from the Exposure Draft — it is ciica better organized, is internally consistent, is easier to read, and has a useful glossary of defined terms before the appendices of examples.

Securities and loans “held for trading purposes,” terminology based originally on U. Here our authors will speak cicw you directly and provide you with updates on current accounting issues, changes in the discipline, teaching trends, tips on using the book. Is this what I should be teaching my students?

It is effective for fiscal years beginning on or after January 1,361, earlier adoption is being encouraged. The nature and effect of each significant change during the period affecting the comparability of the expense reported, such as a change in the rate of employer contributions, a business combination or divestiture. The inclusion of bank overdrafts as a part of cash and cash equivalents has been restricted to situations xica the bank balance fluctuates frequently from being positive to overdrawn” and in some circumstances, investments that meet the definition of xica equivalents may be classified instead as trading assets 34661 investments.


The unamortized amounts remaining, separately disclosing ckca unamortized past service costs, the unamortized net actuarial gain or loss, and the unamortized transitional obligation or asset, as well as the amount of amortization for the period for each.

Those that require research or public service to be performed to benefit the entity during the sabbatical period do not require accrual. Dividend payments are classified in this material as operating outflows, whereas revised Section requires that they be financing outflows. Many intermediate accounting students are one to two years from graduation The nature and effect of each significant non-routine event occurring during the period such as a plan amendment, curtailment or settlement, or business combination or divestiture.

Information about securities of the entity and related parties included in plan assets, and about transactions between the plan and the entity during the period.

Many large Canadian companies, particularly those with reporting requirements in the U. Sectionunlike the Exposure Draft and old Sectionrecognizes the existence of employee contributions.

Section , Employee future benefits: September update: Financial reporting alert

A reconciliation of the beginning and ending balances of the accrued benefit obligation and the fair value of plan assets for the period. Based on risk and return criteria, we must move forward.

The impact on the cash flow statements presented in Chapter 23 and the solutions material provided with the text is limited to the treatment of dividends paid.


The release of new CICA Handbook Sectionsent to subscribers in March,significantly changes the accounting for and reporting of employee future benefits in Canada. Unlike the Exposure Draftthe final standard provides for two levels of disclosure for defined benefit plans: Still in the Exposure Draft stage?

Section 3462, Employee future benefits: September 2013 update: Financial reporting alert

EARSL, or the expected average remaining service life of the employee group is no longer ckca, nor is it a defined term.

The final revisions to Handbook Section recommend the following: Young Existing Standards or New? The final standard includes a recommendation that interest earned on any unallocated plan surplus which might arise if a defined benefit plan 3641 converted to a defined contribution plan should reduce the benefit expense for the period.

Dividends and interest paid and charged to retained earnings should be presented separately as cash flows used in cca activities. In Section as before, fair value is used to determine the plan surplus or deficit.

This note explains a specific requirement that was changed in the final standard, affecting the text material in Chapter 23, and describes areas where the final document provides for additional information or clarification.

Not effective until the year ? Transitional changes were not addressed 361 Chapter This does not materially change the coverage in Chapter Because companies have a choice, the guidance to disclose the policy adopted in determining the composition of cash and cash equivalents has been elevated to a required disclosure.